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Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
Drive Profitability In Your Organisation with Data and Social Strategies
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Drive Profitability In Your Organisation with Data and Social Strategies

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A presentation to the MAtes of Melbourne, IT Dees group on how organisations can use their data combined with social media to drive profitability

A presentation to the MAtes of Melbourne, IT Dees group on how organisations can use their data combined with social media to drive profitability

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  • 1. Drive Profitability In Your Organisation with Data and Social Strategies<br />Mates of Melbourne , 15th April 2011<br />Phillip Dooley and Fergal Coleman<br />Twitter @symphony3think<br />www.symphony3.com/MOM<br />www.symphony3.com<br />
  • 2. Business Dimensions<br />People Needs<br />Why We Exist<br /> (What we offer)<br />Financial Sustainability <br />How We do It <br />(Our Departments or Functions)<br />Building Blocks<br />(IT, Data, Standards, People etc)<br />
  • 3. Stages of Communication<br />People Needs<br />Above the line advertising is telling people what they need en mass.<br />Below the line activity is individually telling them what they need.<br />Smart analysis understands their needs from their behaviour<br />Social media is where they proactively tell us what they want. All we have to do is listen.<br />Why We Exist<br /> (What we offer)<br />
  • 4. What does address tell us?<br />Map your customers or members and compare them to external datasets<br />
  • 5. What does their address tell us?<br />
  • 6. Birds of a feather flock together<br />
  • 7. An example of a future market - Cemetery<br />
  • 8. What does address tell us?<br />We can predict behaviour by address.<br />The likelihood of joining a footy club.<br />The likelihood of becoming a customer.<br />Areas where we should have more customers.<br />
  • 9. We can work out the probability of being a club member<br />
  • 10. 5-9 year olds in house and a club supporter<br />
  • 11. Probability of being a member and spending on a product<br />
  • 12. Auto Sponsor Potential… (example only)<br />High density, top 10% car spend, close to Dealer<br />
  • 13. What does behaviour tell us?<br />Do you know when and what they spend – loyalty club?<br />Do you know when they attend - Turnstile Data<br />
  • 14. Market Penetration<br />
  • 15. 15<br />Introduction to RFM<br />What is RFM?<br />“RFM analysis is a very old and very powerful method of coding existing customers. It is used to predict response, average order size and other factors.” <br /><ul><li>RFM provides a method for determining who is likely to respond, and who is unlikely to respond to a particular offer</li></li></ul><li>RFM predicts the return on a direct marketing action<br />
  • 16. 17<br />How Does RFM work ?<br />R stands for Recency which is the most powerful predictor of customer response. <br />People who have just bought from you are much more likely to respond to a new offer than people who brought from you a long time ago.<br />
  • 17. 18<br />How Does RFM work ?<br />F stands for Frequency. Which has been defined as the number of times that a customer has made a purchase from you.<br />Frequent buyers respond better than infrequent buyers.<br />
  • 18. 19<br />How Does RFM work ?<br />M stands for MonetaryAnalysis<br />It involves categorizing all customers by the total amount that they have purchased (per month, year) and sorting all customers by that amount. <br />
  • 19. 20<br />Break even per RFM Cell<br />This slide highlights the breakeven point for a mail out. <br />
  • 20. RFM principals can tell us:<br />Which customers will leave in the future.<br />Which customers will buy even without marketing.<br />Which customers are becoming more loyal<br />Which customers are becoming less loyal<br />WE used RFM principals to predict which club members would not renew their membership<br />The principals worked backwards but was still highly reliable<br />
  • 21. Likelihood to not renew membership in 12 months time<br />Score Identifies At Risk Members<br />100%<br />80%<br />60%<br />% that rejoin<br />40%<br />% that leave<br />20%<br />0%<br />1<br />2<br />3<br />4<br />5<br />6<br />7<br />8<br />9<br />10<br />Member Retention/Churn Segments<br />
  • 22. How do we know it works<br />We allocated a score from 1 to 10 to the whole club.<br />We kept half of the 1’s as a control group.<br />We sent the other half a “Thank you” letter.<br />We didn’t sell or ask for any money<br />We concentrated on building a sense of community<br />We looked at who did not renew 12 months later.<br />The renewal rate for the group approximately doubled when compared to the control group.<br />WE used similar principals to increase profit from a raffle ticket campaign by 38%<br />
  • 23. Smart analysis understands their needs from their behaviour<br />People Needs – Which need does footy meet<br />HIGHER ATTENDANCE <br />Entertainment and Spectacle<br />Ritual and Ceremony<br />HIGH CLUB LOYALTY<br />Escape Experience<br />DON’T CARE WHO WINS<br />Personal Identification<br />Aesthetic Pleasure<br />Cultural Integration<br />(A sense of belonging)<br />
  • 24. Smart analysis understands their needs from their behaviour<br />People Needs – Which need does footy meet<br />HIGHER ATTENDANCE <br />Only Attend nominated club<br />>3 matches<br />Attends own plus <br />less other clubs<br />Attends more other clubs<br />than own club<br />DON’T CARE WHO WINS<br />Attend Own<br />Team 3 or less times<br />HIGH CLUB LOYALTY<br />Occasionally go anywhere<br />No Attendance<br />
  • 25. What can we do with this?:<br />We match the product to peoples needs.<br />We run focus groups for each segment.<br />Not all of our members appreciate a free scarf and beanie.<br />A small thank you goes a long way.<br />How has it changed the product ?<br />Close spectacular games are as important as who plays.<br />Big crowds create more big crowds. <br />We have a club with no team?<br />
  • 26. Online Community Feedback<br />
  • 27. Revolution<br />“Every generation needs a new revolution.” <br />Thomas Jefferson<br />We are witnessing multiple revolutions right now…<br /> “Revolution doesn’t happen when society adopts new technology, it happens when society adopts new behaviours “ <br />Prof. Clay Shirky author “Here Comes Everybody”<br />
  • 28. Expectations of Organisations Are Changing<br />“In the past we (local government) told the community what we were doing, we have now evolved to engaging the community in what we propose to do, but the expectation of the community today is that not only will they be engaged but they will directly influence and they will have control over what happens. This is not an unreasonable expectation.”<br />John Nevins, CEO, City of Kingston.<br />
  • 29. What is Social Media (and Web 2.0)<br />Social media is based on the integrations/conversations between different people online and for organisations to become part of this they need to move from a monologue to a dialogue<br />Technology<br />is merely the<br />conduit for <br />people to:<br />Create<br />Connect<br />Collaborate<br />React<br />Organise<br />
  • 30. Changing Behaviours!<br />
  • 31. Why Engage? The pay back comes quickly<br />“Companies using the web intensively gain greater market shares and higher margins”<br />- “The Rise of the networked enterprise: Web2.0 finds its payday” – McKinsey Quarterly Dec. 2010<br /> Some averages from report<br />20% decrease in travel costs<br />20% improvement in marketing effectiveness<br />10% reduction in operational costs<br />15% decrease in marketing costs<br />18% increase in customer satisfaction<br />41% increase in employee satisfaction<br />
  • 32. Revolutions can be scary!<br />
  • 33. No wonder it’s daunting!<br />
  • 34. Think about what people do<br />People Creating – Blogs, (blogosphere) user generated content, Podcasts, Youtube, Slideshare.net, Docstoc.<br />People Connecting – Facebook, Linkedin, Twitter, Myspace, Bebo, Orkut, hi5, Secondlife, Foursquare. <br />People Collaborating – Wikis (wikipedia), Intelpedia (internal use), Bearing Point (Mike2.0), Salesforce chatter, Centraldesktop, Sharepoint.<br />People Reacting – Forums, discussion boards, ratings, reviews.<br />People Organising – tags, Digg, De.licio.us. <br />Accelerating Consumption – RSS, Widgets.<br />Forrester<br />
  • 35. The Social Technographics Ladder<br />Groups include people participating in at least one of the activities monthly except Conversationalists who participate in at least one of the included activities at least weekly.<br />Inactives neither create nor consume social content of any kind<br />
  • 36.
  • 37.
  • 38. 7 people = 350,000,000<br />Picked seven bloggers to attend a top secret “Midnight Webcast”<br />They told tens of thousands of fans<br />Mainstream media listened and reported<br />Estimated 350 million people heard the news within 24 hours<br />Is this the future? 2008<br />Who are the influencers in your industry?<br />
  • 39. What are your Objectives<br />1. Listening – Use social media to better research community and customer needs.<br />2. Talking – Use social media to spread messages about your organisation.<br />3. Energising – get your most enthusiastic customers to become advocates , using social media to increase word of mouth.<br />4. Supporting – Support customers or help them to support each other.<br />5. Embracing – Integrate your customers into the way your organisation works<br />
  • 40. Case Study: Kingston City Council<br />“In the past we (local government) told the community what we were doing, we have now evolved to engaging the community in what we propose to do, but the expectation of the community today is that not only will they be engaged but they will directly influence and they will have control over what happens. This is not an unreasonable expectation.”<br />John Nevins, CEO, City of Kingston.<br />
  • 41. Getting Started? What do you need<br />Leadership commitment and vision“Social Media in everything we do”<br />Open up to new technologies and to change behaviours<br />Commitment to loss of control<br />Get Started!<br />Have a Strategy/Framework <br />
  • 42. Social Media Framework Logical Boxes<br />People Needs<br />Who are you Serving? Where are they?<br />What Drives them to Engage with you? <br />Residents<br />Local Business<br />Employees<br />Residents<br />Local Businesses<br />Employees<br />Why We Exist<br />Mission <br />Vision<br />Core Values<br />Strategic Goals<br />Financial Sustainability <br />Improved Customer Service – more support at no additional cost<br />More Efficient Processes<br />Lower Costs<br />How We do It<br />Communicate<br />Make (Services delivered)<br />Listening<br />Talking (Informing)<br />Supporting<br />Supporting Activities<br />Energising/engaging<br />Building Blocks<br />Technology (Tools)<br />Finance (Budget)<br />People (internal)<br />Leadership<br />Culture<br />Skills +Training<br />Standards &<br />Policies<br />Social Media Policy<br />Response Guide<br />Risk Mgmt<br />43<br />Data and Information<br />
  • 43. Coming soon or in prototype…<br />LinkedIN<br />CEO Blog<br />Ning<br />Policy<br />Response Guide<br />Mayoral Blog<br />YouTube/Video<br />Skype/Ipads/Iphones<br />Twitter<br />Wikis<br />Yammer<br />Department specific - strategies<br />Training, awareness and more training!<br />
  • 44. Facebook<br /><ul><li>Timely updates (e.g. floods, festival)
  • 45. Community feedback and engagement
  • 46. Interactive content</li></li></ul><li>Community Consultation Online<br />www.haveyoursayday.com.au<br />
  • 47. Next Step: www.Communityeffect.net<br />Community Fully Engaged and Participating<br />
  • 48. Conclusion<br />Social Media is…..<br />Strategic use of Facebook and Twitter and a whole lot more<br />A technology-enabled conversation with the whole community<br />An enabler:<br />It will allow you to reach your community much more effectively<br />Embrace it strategically<br />Integrate it into your day to day operations<br />Get Engaged!<br />
  • 49. Your thoughts or questions?? <br />What are your experiences?<br />Questions?<br />www.symphony3.com/MOM<br />Facebook.com/symphony3<br />Twitter @symphony3think<br />

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